The UK property auction market experienced a significant uplift in activity during June, with the number of properties available for sale increasing by more than a third compared to the same period last year. According to data from the Essential Information Group (EIG), a total of 4,008 lots were offered across the country, marking a 35.3% rise.
This surge in available properties was mirrored by strong growth in sales and the overall value generated. Sales completed through auction climbed by 31.3%, while the total funds raised saw a substantial 33.5% increase, reaching £519.7 million. Despite this robust activity, the pace of new properties entering the market outstripped buyer demand slightly, leading to a national success rate of 65.3%.
Both residential and commercial sectors contributed to this growth, recording healthy year-on-year increases in lots offered, sales completed, and funds raised. Regionally, certain areas stood out for their performance over the April to June quarter. The South West and Yorkshire and the Humber demonstrated particularly strong growth in both activity and sales. London also posted a robust quarter, with both the number of lots sold and the total value raised increasing by over 20% year-on-year. Scotland also experienced a sharp rise in auction activity, though its success rates remained below the national average.
Industry experts suggest that recent legislative changes in the property sector may be influencing this trend. The introduction of the Renters’ Rights Act in May is thought to be prompting some landlords to review their portfolios, potentially leading to more properties being brought to auction. Stuart Collar-Brown, president of NAVA Propertymark, highlighted that legislative shifts are also impacting commercial sales, as investors increasingly favour longer-term leases over the now-defunct assured shorthold tenancy model in the residential market.
Collar-Brown noted, “The UK’s auction market continues to deliver positive results, with lots increasing by 35% year on year and sales increasing by 31%. This shows that both buyers and sellers continue to see the value of auctioning their property as they seek certainty in a turbulent economic climate.” He added that as long as properties are priced realistically to foster competitive bidding, the auction sector is expected to maintain its growth trajectory.